NZ increases problem gambling services spending by almost 25%

The latest triennial Ministry of Health plan comes in the wake of record gambling expenditure in the country during 2020-21, when $2.62bn was spent on non-casino gaming machine operators (NCGMs), Lotto NZ, TAB NZ and casinos combined.

The 24.6% increase in Ministry expenditure on gambling services between 2022-25 comes at a time when, as the Ministry concedes, the proportion of the New Zealand population who are at risk of gambling harm is at its lowest since the early 1990s.

However, because the adult population has grown, the Ministry says this means that the actual number of people who are experiencing gambling-related harm has increased.

The Ministry has identified a number of areas for improvement during the forthcoming period, including disproportionate levels of harm experienced by Māori and Pacific peoples, and by some segments of the Asian population. It has also seen higher levels of exposure to gambling products and disproportionate levels of harm experienced by people living in areas with high social deprivation scores and the possibility of a significant increase in online gambling.

The Ministry will spend NZ$76.12m ($48.0m/£39.0m/€45.5m) on its strategic plan over the next three years from 2022-25, which is an increase of $15.8m from the prior period from 2019-22.

This will be funded by an increase in the levy on the country’s four identified gambling segments – NCGMs, Lotto NZ, TAB NZ and casinos. Gaming machine operators will pay a levy rate of 1.08% of player expenditure compared to 0.78% previously, while casinos move up from 0.56% of win to 0.87%. TAB NZ will now pay 0.76% of betting profits compared to 0.52% previously, with Lotto NZ up slightly from 0.43% of turnover less prizes paid to 0.44%.

Some $34.2m will be spent on clinical intervention and support, which is up almost $9m on the prior period. A further $24.8m has been earmarked for public health services, $7.9m on new services and innovation, and $3.4m for operating costs. The only area where funding has decreased is research and evaluation, which is down $971,000 to $5.6m.

“The new funding and strategy aligns our gambling harm prevention and minimisation efforts with the reforms to the health and disability system and the new mental health system we’re building,” said Andrew Little, Minister of Health.

Strategies outlined in the 2022-25 document have been made to align with the broader reforms currently underway across the health and disability system. These are underpinned by the $1.9bn Kia Manawanui whole-of-government action plan for the long-term transformation of the mental health and addiction sector, which was introduced from 2019.

Key strategic changes include strengthening partnership approaches to design and delivery of services, and increasing awareness and engagement for those at risk, with a greater focus on targeted public health initiatives developed in collaboration with priority populations, particularly young people.

Other new initiatives include developing and expanding digital services and support and developing and evaluating new services to increase choice and strengthen evidenced based service improvements using more action research methods with affected communities.

“Effective regulation of gambling means we can deal with harms including financial problems, relationship problems, family violence, and alcohol abuse,” said Internal Affairs Minister Jan Tinetti. “The new investment and strategy is about showing we’re serious about protecting New Zealand from these harms.”

“The Strategy to Prevent and Minimise Gambling Harm was developed following public consultation in late 2021 and will ensure that services are co-designed with people with lived experience of gambling harm, service providers, community groups and industry bodies.”

The levy increase was criticised by Clubs New Zealand, the trade group that represents more than 300 clubs across the country, when it was revealed earlier this month.

“Clubs New Zealand’s take away from the levy review is that the Ministry of Health and Ministry of Internal Affairs have elected to do much of the same at a much greater cost,” a spokesperson said.

“In our submission on the levy review we argued that the current strategy is not working and this was evidenced by the fact that the level of harm in the overall population has not reduced since 2012, services provided are underutilised, and there is a general failure to meet the strategies objectives.

“The last strategy saw $1.5m allocated for funding harm minimisation technology, at the time of writing our submission, none of that $1.5m had been spent. There has been wide support for venue-based harm minimisation technology, however, this is met with increasing resistance from regulators.

“Clubs New Zealand is incredibly supportive of the problem gambling levy, but it must be set at a reasonable level with clear, defined and achievable objectives.”

Dafabet becomes Bournemouth’s shirt sponsor

Under the terms of the new two-year partnership, Dafabet will feature on the front of the club’s playing shirts ahead of their return to England’s top-tier league in 2022-23 following promotion last season.

Dafabet, which is licensed in the UK and Malta, will also make a financial donation to the club’s Community Sports Trust to support projects that help get adults into work.

“Signing this partnership with Dafabet is extremely important in providing us with crucial revenue as a football club,” said Rob Mitchell, Bournemouth’s commercial director.

“The revenue will enable us to help with our club objectives of being competitive in the Premier League and our commercial goals that come with promotion.

“Dafabet have a huge presence in sport having worked with a whole host of clubs in different areas and we look forward to a successful partnership with them over the next two years.”

Dafabet has partnered with multiple British football clubs in recent years, dating back to deals with Everton and West Bromwich Albion in 2012. It has also been associated with Celtic, Burnley, Aston Villa and Fulham, as well as cricket teams and snooker tournaments.

John Cruces, head of sponsorships at Dafabet, said: “We’re very happy to announce the partnership and send congratulations to all at the club on the return to the Premier League. It’s no surprise to anyone, it’s the most watched league in football – so being on the front of the shirt gives us excellent branding worldwide.

“As with all our partners we will work closely with the club’s community sports trust, ensuring we support relevant fundraising events and offer tickets to all matches throughout the season.

“Finally, we look forward to the new season and are sure we’ll work together to achieve common goals.”

Raw iGaming and Videoslots enter content deal

The deal will see all of Raw iGaming’s engines and existing slot catalogue become integrated into Videoslots’ offerings.

The announcement will make Videoslots Raw iGaming’s first partner to offer its full gaming portfolio in many European regulated markets; including, Italy, Spain, Sweden, Germany and Denmark.

“This is a fantastic opportunity to offer our games to one of the premium casino destinations online as well as launch on to their unique Battle of Slots system,” said Tom Wood, CEO of Raw iGaming.

“Videoslots is one of the true pioneers in casino gamification and has always been in the forefront of pushing the envelope. With the addition of SuperSlice and SuperTracks within their casino we are honoured they have taken the step to add our innovative and unique games to bring differentiation to their sea of sameness.”

The news comes after string of recent acquisitions by Raw iGaming, including Sapphire Gaming earlier this month and Leander Games in April.

Leander Games’ entire catalogue of games are included in the content deal.

Ulle Skottling, deputy CEO of Videoslots, added: “We are thrilled to be the first to offer the new and exciting SuperSlice and SuperTracks engines in Europe as well as for the opportunity to offer the games to players enjoying our popular battle of slots offering.”

“We have the biggest online casino offering in igaming and it wouldn’t make sense to miss an opportunity to be the first to offer one of the markets most exciting new game innovations to our players. We very excited to see how players respond to these games and how Raw further develops them as new innovative experiences for players.”

Holland Casino agrees blanket pay rises despite revenue dip

The negotiated agreement, which runs until the end of September 2023, sees a series of wage commitments and one-off payments following weeks of discussions with FNV, the Netherlands’ largest trades union confederation, and De Unie.

Wages for all employees will be increased by 2.5% from this month, while a nominal amount of €60 per month will also be added on a structural basis. There will be a new minimum wage of €14 per hour, while wages will increase by another 0.75% from the start of 2023.

All those who are employed by Holland Casino in July this year will receive a one-off gross amount of €350 based on full-time employment in that month.

Marleen Berk, human resources director at Holland Casino, said: “The past two years have been dominated for Holland Casino by the impact of the coronavirus. We were forced to close our doors for months and were confronted with many restrictive measures.

“In the discussions about wages, we had to take into account Holland Casino’s financial position on the one hand, and inflation and the situation on the labour market on the other.

“I am pleased that we have achieved a good result in a relatively short period of time. With this increase, there is a balanced agreement that is good for our employees and for Holland Casino.”

The raises across the board come despite Holland Casino experiencing an 8.7% year-on-year decrease in revenues for 2021. Holland Casino’s revenue dropped to €304.2m in 2021, as the launch of online gaming was not enough to offset the continued impact of the Covid-19 pandemic. Casinos were closed for 168 days due to lockdown restrictions.

Gambling Commission announces licensing process overhaul

The regulatory body said that operators will no longer have an individual point of contact, with licensing to comprise four sub-groups, each of which will be responsible for different areas of work.

The operating licence group will be responsible for processing applications for new operator licences, while the change of corporate control group is responsible for processing applications relating to changes of ownership and control for existing operators.

The operating licence vary group is responsible for processing applications relating to changes to existing operator licences, and the personal licence group is responsible for processing all applications relating to personal licences.

“We are changing our working practises to make the best use of our resources,” the Commission said in a statement. “By working in this way, we hope to be able to process applications more quickly. We also hope to be able to resolve queries more efficiently and effectively.”

The Commission confirmed that the way in which applications should be submitted has not changed.

The changes to licensing processes comes as the Gambling Commission awaits the publication of the Gambling Act white paper, which comes after a comprehensive review of the 2005 Gambling Act. The Commission’s role and powers has come under specific scrutiny in the review under the terms announced in December 2020.

The call for evidence in 2020 asked if the Commission has “sufficient investigation, enforcement and sanctioning powers” to bring about change and improve standards in the industry. It then asks if there is scope for its existing powers to be “used differently or more effectively”.

British industry body Gambling Business Group (GBG) noted last week that publication of the white paper, which forms part of the country’s Gambling Act Review, appeared to be imminent.

In March, Nigel Huddleston – the Parliamentary Undersecretary for Digital, Culture, Media and Sport, who also previously oversaw the gambling brief that is now the responsibility of Chris Philp, had told parliament that the white paper was being “finalised”.

The document is expected to address a wide range of topics relating to the gambling sector. In an initial call for evidence when the review launched, DCMS asked questions about topics such as stake limits, affordability checks and universal deposit limits, as well as restrictions on advertising and bonuses.

NSW to provide hospitality refresher courses amid staff shortages

This has implications for the gambling sector in the state, which is still facing the prospect of a tight-labour market and many staff left the industry due to the Covid-19 pandemic.

“Many who left the sector have seen their mandatory certifications lapse,” said Kevin Anderson, NSW minister for hospitality and racing. “We want to make it easy for those people to quickly and freely renew those certifications and remove any barriers that are preventing them from re-entering the hospitality sector.”

Anderson specified that the refresher courses would ensure that staff in the gambling and alcohol industries remain trained to a high level.

“It’s not just bar and wait staff who require a Responsible Service of Alcohol (RSA) certificate – others who work or volunteer where alcohol is sold also need it, including security, crowd control and promotional staff,” he said. “The same goes for the Responsible Conduct of Gambling (RCG) certificate– if you work around poker machines you need to have specific training to identify and minimise gambling harm.”

John Green, Australian Hotels Association NSW director of liquor and policing, thanked the minister for the initiative.

“Reducing red tape makes it easier for those who worked in the industry to come back and pick up a few shifts at their local – we would especially encourage older workers with their years of experience to step back behind the bar,” said Green.

The Authority said that since February over 16,000 people have completed its free RSA and RCG refresher courses

Last week, NSW announced that it would increase the state’s point-of-consumption tax to 15%.

ACMA to launch self-exclusion register

The register will cover licensed online and telephone sports betting services, with people being able to exclude themselves for any time period between three months to permanently.

The ACMA placed the initiative on a list of their key compliance priorities for the year. Other priorities include combating identify theft, phone scams and misinformation on social media.

“The register will provide an avenue for people who want help changing their gambling habits and will complement existing consumer protection measures,” said Nerida O’Loughlin, ACMA chair.

“Once you choose to self-exclude, it will be an offence for a licensed wagering provider to open an account for you, take a bet from you or to market gambling services to you. The ACMA will be enforcing those rules.”

Earlier this month, the ACMA encouraged internet service providers to block access to thepokies.net due to failure to comply with the provisions of the country’s 2001 Interactive Gambling Act.

Allied Esports boosted by return of live events in Q1

In a trading update to 31 March, Allied – which sold assets including World Poker Tour for  $105m last July – said total revenues from continuing operations of $2.4m increased 381% for the first quarter of 2022 compared to the first quarter of 2021. The group posted revenues of $6.2m in the first quarter of 2019, prior to the Covid-19 pandemic and the divestment of its poker segment.

To read the full article, click here.

Betfair International signs Ronaldo Nazário as brand ambassador

The former Real Madrid, Barcelona and Internazionale forward joins Betfair alongside his former teammate Rivaldo, with the pair having starred together as Brazil won the 2002 FIFA World Cup 20 years ago this month.

Betfair International, which is part of Flutter Entertainment, said the brand will join with the two-time World Cup winner and three-time FIFA World Player of the Year on a series of exciting activations and premium content.

“Joining the Betfair team of ambassadors is an honour, I will wear, once again, the same shirt as Rivaldo, something we did 20 years ago and makes us very proud to this day,” said Ronaldo Nazário “I have no doubt that this partnership with Betfair will bring many amazing experiences to football fans. In a World Cup year, fans can expect a lot of news from Betfair and Ronaldo together, every result is possible.” 

Betfair International is the official sponsor of Conmebol Libertadores and Sudamericana, the second-most prestigious club competition in South American football, in addition to having the naming rights of the Campeonato Carioca in the 2022 season. In May of this year, Betfair International announced a sponsorship deal with Brazilian club side Palmeiras and master sponsorship of their women’s football team for the next two years, the agreement includes official and exclusive digital content on the club’s platforms.

Kimberley Daly, managing director for Betfair International, said: “We’re very excited to have the legendary Ronaldo join our stable of ambassadors, joining forces with his World Cup winning compatriot Rivaldo. With such high-calibre ambassadors, Betfair gets closer to Brazilian sports fans and bettors and we are keen to deliver the most premium experiences a betting company can offer.”

Atlantic City casinos could lose $1m in EBITDA daily during strike, says union

Unite Here’s members provide cleaning services for hotel rooms, gaming floors and restrooms across Atlantic City.

The union released the figures in a strike impact report, which was issued following a vote from workers at five Atlantic City Casinos– which passed with a 96% majority on 15 June.  

The vote included workers at all three Atlantic City casinos operated by Caesars Entertainment- Caesars, Harrah’s, and Tropicana.

It also included staff at MGM Resorts Entertainment’s Borgata casino and the Hard Rock casino.

The report estimated that the strike could cost Caesars approximately $1m per day in EBITDA. This is assuming that Caesar’s Q3 2022 results would have a 10% year-on-year increase, and that the strike results in a yearly decline of 25% in net revenue.

Meanwhile, the strike could cost MGM’s Borgata approximately $1.6m in EBITDA, with the same assumptions in place.

According to the report, the strike could cause a disruption in operations that would affect food and beverage availability, cause a decrease in customer service and cause a reduced hotel room occupancy.

The report also stated that the effects of the strike could be amplified by the tight labour market.

The last Unite Here strike occurred in 2004.

The strike deadline – which is set for 1 July – falls just before the 4 July holiday, which is also when the third quarter is expected to peak.

The paper also noted that Caesars received 15% of its earnings last year from its Atlantic City properties, and is therefore at significant potential exposure to the industrial action.